Neoliberalism collapsed - Conservative developmentalism is on the way
In this essay, I relate my personal experience in politics with the construction of the political economy of New Developmentalism and the definition of two alternative forms of economic coordination of capitalism: economic liberalism and developmentalism. From this framework, I discuss the collapse of neoliberalism, to which the 2008 global financial crisis and the Covid pandemic represented a final blow; the superiority of developmentalism when well managed; the Developmental Turn in the Biden administration; and my bet that this change will open room for more growth in the US and the other central countries. Yet, given the continuing competition of developing countries, I predict that this third historical developmentalism will be conservative, and that it will continue to press wages and salaries.
- Rich countries should deepen the Developmental Turn to ensure price and financial stability and grow faster.
- Rich countries should understand that they cannot impose policies and reforms to developing countries, which have learned how soft-power imperialism works and how to defend themselves.
- Developing countries must, as soon as possible, embrace the Developmental Turn and resume catching up.
Photo by Mikael Blomkvist